Correlation Between NAURA Technology and Hygon Information
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By analyzing existing cross correlation between NAURA Technology Group and Hygon Information Technology, you can compare the effects of market volatilities on NAURA Technology and Hygon Information and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in NAURA Technology with a short position of Hygon Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of NAURA Technology and Hygon Information.
Diversification Opportunities for NAURA Technology and Hygon Information
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between NAURA and Hygon is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding NAURA Technology Group and Hygon Information Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hygon Information and NAURA Technology is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on NAURA Technology Group are associated (or correlated) with Hygon Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hygon Information has no effect on the direction of NAURA Technology i.e., NAURA Technology and Hygon Information go up and down completely randomly.
Pair Corralation between NAURA Technology and Hygon Information
Assuming the 90 days trading horizon NAURA Technology Group is expected to under-perform the Hygon Information. But the stock apears to be less risky and, when comparing its historical volatility, NAURA Technology Group is 2.4 times less risky than Hygon Information. The stock trades about -0.13 of its potential returns per unit of risk. The Hygon Information Technology is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 14,075 in Hygon Information Technology on October 25, 2024 and sell it today you would lose (828.00) from holding Hygon Information Technology or give up 5.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
NAURA Technology Group vs. Hygon Information Technology
Performance |
| Timeline |
| NAURA Technology |
| Hygon Information |
NAURA Technology and Hygon Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NAURA Technology and Hygon Information
The main advantage of trading using opposite NAURA Technology and Hygon Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NAURA Technology position performs unexpectedly, Hygon Information can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Hygon Information will offset losses from the drop in Hygon Information's long position.| NAURA Technology vs. Wasu Media Holding | NAURA Technology vs. Beijing Enlight Media | NAURA Technology vs. Shuhua Sports Co | NAURA Technology vs. Fuzhou Rockchip Electronics |
| Hygon Information vs. Kweichow Moutai Co | Hygon Information vs. NAURA Technology Group | Hygon Information vs. APT Medical | Hygon Information vs. BYD Co Ltd |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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